World’s largest cryptocurrency by market capitalization, Bitcoin, the king of Crypto Empire, hopped over 9% Saturday to around $6,770, as indicated by CoinMarketCap information, its largest amount since October.
Bitcoin is bullish Saturday, climbing to a new eight months high. The explanation behind the upward move wasn’t quickly clear. The virtual money is currently up over 50% since the beginning of the year.
Other digital assets, including ether and XRP, also climbed. Ether moved about 6.27% breaking the resistance of $175, currently settled down at $184, while XRP was up nearly 3.54% at a price of 31 cents.
On 11 May 2019, Bitcoin hit a high of $6964 before correcting to $6770, very close to hitting $7000 mark. The Price of bitcoin is up 8.2 % in the last 24 hours.
Bitcoin’s Next Move
This year along the price of bitcoin has increased by 84 percent, David Puell, Research head of adaptive Capital, said
“Price is not only parabolic but vertical now. Shorts are still far from getting fully squeezed. $6.4k may activate longs from late trend traders, setting up the perfect blow-off to,”
As indicated by Global market analyst Alex Krüger, a potential passage into the $7,000 to $8,000 territory, which would permit bitcoin to recuperate to July 2018 dimensions, would require a solid boost to fuel the energy of the predominant cryptocurrency. He said:
“BTC now in the bull market territory after an intraday blow-off top. R: 7000, 8000 S: 6400, 6000 Old levels not as valuable, hence why above 6400 only looking at round numbers as major resistance. Hourly volume at Bitmex was the 2nd largest ever after Sep/5/18,”
Another Expert Willy Woo, clarified the procedure wherein a short crush happens, generally when a chain response of liquidation drives the price to experience a vertical development.
“All this happens without any on-chain activity. As it’s an exchange driven game, no real investors are buying into the rally. Get the popcorn out, let’s see if the squeeze completes…. Look for the Bitfinex shorts (red line to drop) and the BitMEX funding rate to go positive.”
The mechanics of short squeezes 101:
1) When the market is majority short, there's too much money to be had to allow them to win.
2) Whales keep buying up the market until the shorts get liquidated.
3) At liquidation the short seller has to buy back at market price.
— Willy Woo (@woonomic) May 11, 2019
Barry Silbert, the author and CEO of Digital Currency Group, said that the trading volume of the Bitcoin Investment Trust (GBTC) outperformed $50 million on Friday, turning into the most effectively exchanged stock on OTC Markets.
— Barry Silbert (@barrysilbert) May 10, 2019